INTERNATIONAL TECHNOLOGY TRANSFER (ITT) AND DEVELOPMENT OF TECHNOLOGICAL CAPABILITIES IN MALAYSIAN CONSTRICTION INDUSTRY: A

CONCEPTUAL FRAMEWORK

BY:

ASSOC. PROF. DR. ROSHANA TAKIM PROF. DR. ABDUL HADI NAWAWI

ROSHARTINI OMAR

SEPTEMBER 2011

mmmm uNivERsrn TEKNOLOGI MARA

2Surat Kami : 600-RMI/SSP/FRGS 5/3/Fsp (4/2008) Tarikh : 10 Oktober2008

Dr Roshana Takim Ketua Projek Fakulti Seni Bina Perancangan & Ukur 40450 Shah Alam UiTM MALAYSIA

Prof Madya Dr Hj Abdul Hadi Bin Nawawi Ahli Projek Fakulti Seni Bina Perancangan & Ukur 40450 Shah Alam UiTM MALAYSIA

Rosehartini Hj Omar Ahli Projek Fakulti Seni Bina Perancangan & Ukur 40450 Shah Alam UiTM MALAYSIA

Tuan/Puan,

TAJUK PROJEK FRGS: INTERNATIONAL TECHNOLOGY TRANSFER (ITT) AND DEVELOPMENT OF TECHNOLOGICAL CAPABILITIES IN MALAYSIAN CONSTRUCTION INDUSTRY: A CONCEPTUAL FRAMEWORK

Dengan segala hormatnya perkara di atas adalah dirujuk.

Sukacita dimaklumkan Jabatan Kementerian Pengajian Tinggi Malaysia telah meluluskan permohonan projek penyelidikan tuan/puan bagi FRGS Fasa 1/2008 seperti tajuk di atas dengan keputusan seperti berikut:-

"Disokong dengan peruntukan RM45, 000.00". Recommended, however aspect related to Data Analysis need to be discussed."

Kelulusan ini juga tertakluk kepada syarat-syarat seperti berikut:-

1. Tempoh projek penyelidikan ini ialah 2 tahun iaitu bermula 1 Julai 2008 sehingga31 Julai 2010.

2. Kos yang diluluskan ialah sebanyak RM45, 000.00 sahaja. Sila kemukakan bajet yang baru mengikut kos yang diluluskan dengan menggunakan borang Bahagian E-Budget/Belanjawan. Perbelanjaan hendaklah mengikut butiran Belanjawan yang telah diluluskan.

3. Semua pembelian bahan/peralatan adalah diminta agar tuan/puan mematuhi prosedur perbendaharaan di mana pembelian melebihi RM500.00 hendaklah mengemukakan sebutharga.

Peno long Naib Canselor (Penyel id ikan) 603 5544 2094/2095 Bahag ian Penye l id ikan : 603-5544 2097/2091/552 1 1462 Bahag ian Perund ingan : 603-5544 2100/2753/2092 Bahag ian Inovasi : 603-5544 2750/2747

Bahagian Penerbitart : 603-5521 1-425/5544 2747 Bahagian INFOREC : 603-5544 3097/2104/2098 Bahagian Sains: 603-5544 2098/5521 1463 Pejabat A m :603-5544 2093/2 101/2057/2559

Bahagian Pentadbtran Fax Uni t Kewangan Zon 1 7

;0450 Shah A lam, Malaysia

Table of Contents

1. Letter of Report Submission iii

2. Letter of Offer (Grant) iv

3. Acknowledgements v

4. Enhanced Research Titles and Objectives vi

5. Report 1

5.1 Proposed Executive Summary 1

5.2 Enhanced Executive Summary 2

5.3 Introduction 3

5.4 Literature Review 7

5.5 Methodology 13

5.6 Results and Discussion 19

5.7 Conclusion and Recommendation 24

5.8 References/Bibliography 39

6. Research Outcomes 42

7. Appendices 44

ii

5. Report

5.1 Proposed Executive Summary

(Original proposal - 300 words)

The phenomenon of International Technology Transfer (ITT) projects has emerged as an

important business and managerial concern for many developing countries across the

globe as well as Malaysia. According to many researchers, ITT projects involve cross-

border transfer of technology with the main purpose to enhance the local technology

capabilities in response to a changing economic environment. These technology transfer

projects could be viewed in the form of knowledge (soft technology), skill, and tools

(hard technology) which usually congregate from advanced countries to the developing

countries through construction project development.

Numerous modes (known as channels) of ITT could occur from the public and private

firms of advanced countries to private and public sector locally. Some of the channels

are considered effective while others are regarded as less effective. Therefore, the

objectives of this paper are three folds; to investigate the major channels of international

technology transfer (ITT) projects in Malaysia and how these channels and technology

capabilities are diffused within the Malaysian construction industry. Finally, a conceptual

framework is proposed for a successful ITT and development of technological

capabilities for the Malaysian construction industry.

1

5.2 Enhanced Executive Summary

(Abstract of the research)

The phenomenon of 'international technology transfer' or ITT projects has emerged as an

important business and managerial concern for many developing countries. ITT in

construction is seen as an effective mechanism to advance the flow of technological

development by acquiring newer technology from abroad in response to a changing

economic environment. The concept of ITT in construction organisations could occur

simultaneously, involving the flow of imported technology (i.e., knowledge, skills and

tools) via construction projects. Thus, the aim of this research is to develop a framework

to enhance implementation of International Technology Transfer (ITT) in Malaysian

construction projects.

Empirical research undertaken by means of Initial Survey among two academicians and

three practitioners involved in technology transfer research and projects, followed by

Case Studies (by means of semi-structured interviews) among the six (6) Malaysian

International Companies with experience in ITT projects. The response rate was 48.6%

(35 out of 72 respondents) within a-year period. The results were analysed by means of

content analysis techniques using NVivo software version 8.

The findings from the research were then used to develop a conceptual framework for

ITT and development of technological capabilities in Malaysian construction industry.

The Framework was validated using a validation questionnaire survey. The research

showed that the five major factors (or components) that influence the process of

international technology transfer (ITT). There are: types of technology (i.e., knowledge,

skills and tools); the organisations (i.e., public and private sectors); the level of absorptive

capacity; the level of technological capabilities, and benefits and barriers of ITT projects.

The results of the research could provide an insight into the Malaysian construction

project development and will hopefully provide valuable guidelines, especially to public

or private sectors in Malaysia that are looking forward to global construction market.

2

Table of Contents5. Report5.1 Proposed Executive Summary5.2 Enhanced Executive Summary5.3 Introduction5.3.1 Statement of research problem

5.4 Literature Review5.4.1 International Technology Transfer (ITT) in the Malaysianconstruction industry5.4.2 Propose an Amalgamated Model of International TechnologyTransfer (ITT) project model in Malaysia

5.5 Methodology5.5.1 Research Design And Methodology5.5.2 Nature of Study (Research Paradigm)5.5.3 Research Sample5.5.4 Unit of Analysis5.5.5 Background of Case Studies

5.6 Results and Discussion5.6.1 Research Objectives 1: Types of Technology in InternationalTechnology Transfer (ITT) Projects5.6.2 Research Objectives 2: Factors Influencing International TechnologyTransfer (ITT) Process5.6.3 Discussion

5,7 Conclusion and Recommendation5.7.1 Conclusion5.7.1.2 The Components of the Framework of International TechnologyTransfer (ITT) and Development of Technological Capabilities inMega Construction Projects.5.7.1.3 Benefits of the Framework5.7.1.4 Comments of the framework

5.7.2 Recommendation

5.8 Refer en ces/Bibliography6. Research OutcomesAPPENDIX AAPPENDIX BAPPENDIX C